Mr. Beef faces foreclosure over $600,000

Mr. Beef, the popular Italian beef sandwich restaurant serving River North for 30 years, is facing a foreclosure lawsuit filed by a bank seeking more than $600,000.

One of the restaurant's owners, Joseph Zucchero, said his problems with Midwest Bank arose after two loans matured late last year. Zucchero said he wanted to refinance them, but the bank declined. The bank filed for foreclosure after the loans weren't repaid.

Zucchero said Midwest is seeking to collect more than $300,000 relating to Mr. Beef, and another $300,000 relating to Natalino's, a Chicago restaurant at 1523 W. Chicago Ave. co-owned by Zucchero that opened last year.

Mr. Beef is not closing, according to Zucchero. "The business is not faltering," he said.

Zucchero's attorney, Jim DiChristofano, added: "Midwest is waiting for us to get refinanced. They're not trying to get us shut down."

Jay Fritz, Midwest Bank's chief executive, said his bank does not comment on clients' accounts. But he said he "loves" Mr. Beef's food, and that, generally, his bank is "lending aggressively" to old and new clients.

Zucchero is aiming to obtain financing elsewhere. DiChristofano said Zucchero is trying to work with another lender, American Eagle Bank. Representatives from American Eagle could not be reached for comment.

DiChristofano said he has other clients in similar situations as Zucchero, where banks aren't lending like they used to. "It's really a nightmare," DiChristofano said. "Banks are not extending lines of credit."